Cloud adoption, rising cyberattacks, and need for business continuity are driving strong global demand for scalable Disaster Recovery-as-a-Service solutions.

WILMINGTON, DE, UNITED STATES, November 21, 2025 /EINPresswire.com/ -- According to a new report published by Allied Market Disaster Recovery-as-a-Service Market Size, Share, Competitive Landscape and Trend Analysis Report, by Operating Model (Managed DRaaS, Assisted DRaaS, Self-Service DRaaS), by Service Type (Real-time Replication, Backup & Restore, Data Protection, Others), by Deployment Mode (Public Cloud, Private Cloud), by Organization Size (Large Enterprise, Small & Medium-Sized Enterprises), by End-use Industry (Banking, Financial Services, and Insurance (BFSI), IT & Telecommunication, Government & Public Sector, Healthcare, Retail & Consumer Goods, Media & Entertainment, Others): Global Opportunity Analysis and Industry Forecast, 2021 - 2031, The global disaster recovery-as-a-service market was valued at USD 6.5 billion in 2021, and is projected to reach USD 60.4 billion by 2031, growing at a CAGR of 23.9% from 2022 to 2031.

The Disaster Recovery-as-a-Service (DRaaS) market is emerging as a critical component of modern IT resilience strategies, offering cloud-based backup, replication, and failover solutions to ensure business continuity. As organizations increasingly digitize operations, minimizing downtime and preventing data loss have become top priorities, making DRaaS a preferred alternative to traditional, hardware-heavy disaster recovery systems.

The market is expanding rapidly due to rising cybersecurity threats, the complexity of hybrid IT environments, and the growing need for cost-efficient recovery solutions. DRaaS eliminates the need for maintaining secondary data centers, allowing enterprises of all sizes to implement robust recovery infrastructure with greater scalability, automation, and flexibility.

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One of the primary drivers of the DRaaS market is the growing frequency and sophistication of cyberattacks, including ransomware and data breaches. Organizations are recognizing the importance of rapid recovery mechanisms to avoid costly downtime and reputational damage.

Cloud adoption across enterprises is accelerating DRaaS deployment, as the service model leverages virtualized infrastructure to ensure faster replication and seamless failover. Cloud-based DR also enables more efficient testing and validation compared to traditional DR setups.

Cost efficiency is another major market catalyst. DRaaS eliminates capital expenditure on physical infrastructure, shifting businesses to a predictable, subscription-based model. This is particularly beneficial for SMEs that require enterprise-grade resilience without large upfront investments.

However, concerns surrounding data security, compliance regulations, and vendor lock-in remain challenges for market adoption. As data moves across cloud environments, organizations must ensure adherence to regional and industry-specific standards.

Despite these hurdles, ongoing advancements in orchestration, automation, and multi-cloud support continue to strengthen market growth. Vendors are integrating AI-driven monitoring and improved failover capabilities to enhance recovery speed and reliability.

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The DRaaS market is typically segmented by service type (backup & restore, real-time replication, data protection), deployment mode (public cloud, private cloud, hybrid cloud), organization size (SMEs, large enterprises), and industry vertical (BFSI, healthcare, IT & telecom, government, retail, manufacturing). Among these, hybrid cloud–based DRaaS is witnessing strong adoption due to its balance of flexibility, control, and cost efficiency.

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North America leads the global DRaaS market, driven by high cloud adoption, stringent compliance requirements, and elevated cybersecurity risks. The presence of major cloud service providers and strong investment in IT resilience initiatives further solidify the region’s dominance.

Asia-Pacific is expected to record the fastest growth, propelled by rapid digitalization, expansion of cloud data centers, and rising awareness of business continuity solutions among enterprises. Countries such as India, China, and Japan are witnessing increased DRaaS adoption due to growing cybersecurity incidents and government-led cloud modernization programs.

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The key players profiled in the DRaaS industry report include IBM Corporation, Axcient, Sunguard, Amazon Web Services, Inc., Cable & Wireless Communications Limited., TierPoint, LLC., Microsoft Corporation, VMware Inc., NTT Communications Corporation, and Rackspace Technology.

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• Based on operating model, the managed DRaaS sub-segment emerged as the global leader in 2021 and it is also anticipated to be the fastest-growing sub-segment during the forecast period.
• Based on service type, the real-time replication sub-segment emerged as the global leader in 2021, and the backup & restore sub-segment is predicted to show the fastest growth in the upcoming years.
• Based on deployment mode, the public cloud sub-segment emerged as the global leader in 2021, and the private cloud sub-segment is predicted to show the fastest growth in the upcoming years.
• Based on organization size, the large enterprise sub-segment emerged as the global leader in 2021, and small & medium-sized enterprises sub-segment is predicted to show the fastest growth in the upcoming years.
• Based on end-use industry, the banking, financial services, and insurance (BFSI) sub-segment emerged as the global leader in 2021 and is also predicted to show the fastest growth in the upcoming years.

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David Correa
Allied Market Research
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